Foreclosure filings tumble 14% in November

Decreases are biggest recorded since RealtyTrac data started in 2005

CHICAGO (MarketWatch) — Foreclosure filings fell 14% in November, compared with November 2009, according to a report released Thursday by RealtyTrac, an online marketplace for foreclosure properties.

In November, filings were reported on 262,339 U.S. properties, a 21% drop from October, the report said. RealtyTrac counts all foreclosure filings, including default notices, scheduled auctions and bank repossessions in its analysis.

“Foreclosure activity decreased dramatically in November, with fewer than 300,000 properties receiving a foreclosure notice for the first time since February 2009,” said James J. Saccacio, chief executive at RealtyTrac, in a news release.

“While part of the decrease can be attributed to a seasonal drop of 7% to 10% that typically occurs in November, fallout from the foreclosure robo-signing controversy forced lenders and servicers to hit the pause button on many foreclosures while they scrambled to revamp their internal procedures and revise or resubmit questionable paperwork.” See related story on bank regulatory examination.

According to RealtyTrac, November’s month-over-month and year-over-year decreases were the biggest drops recorded since RealtyTrac began publishing the statistics in January 2005.

In November, 78,955 properties received default notices and 115,956 properties had foreclosure auctions scheduled for the first time, according to RealtyTrac. Lenders foreclosed on 67,428 properties in November.

Stephen East, an analyst at Ticonderoga Securities, said the drop in foreclosures may help existing-home sales prices in December and January and reduce inventory.

“However temporary, this may provide a short-term trade versus expectations and computer-driven trading. We will need to look at expectations closer to the event. As well, investors have a short memory, with not all accounting for the moratorium initially,” he said in a note to clients.

Amy
Hoak

Amy Hoak is a MarketWatch editor and columnist based in Chicago. Follow her on Twitter @amyhoak.

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